Shares in rare earths miner Lynas Corporation have been halted from trade ahead of an outcome in a court case relating to its licence to operate a plant in Malaysia.

Lynas was granted a temporary operating licence for its controversial advanced materials plant on Malaysia's east coast in September, but local activists have sought a judicial review of that approval.

Environmental activists and local residents argue the plant will produce radioactive pollution.

The Kuantan High Court is scheduled to make a decision on Lynas' operating licence on Thursday.